Achema Grows Fertilizer Production in Lithuania

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Researched by Industrial Info Resources (Sugar Land, Texas). Achema AB (Joniskis, Lithuania) is planning to add three new production units at its existing site in Jonava, Lithuania, at cost of approximately $400 million. Initial plans call for the design and construction of an ammonia production unit, a urea formaldehyde unit, and a nitrogen phosphorus potassium (NPK) unit. Achema is the largest nitrogen fertilizer producer in Lithuania and with the unit additions, intends to stay on top. Currently, Achema produces two million tons per year of nitrogen fertilizer and will come close to three million tons a year once the new units are operational.

The largest and most costly of the additions is the ammonia unit, which will produce 550,000 tons per year. The cost for this unit is estimated at $250 million.

The nitrogen phosphorus potassium unit will produce 150,000 tons per year and will cost around $75 million. The urea formaldehyde unit will produce 75,000 tons per year and will also cost around $75 million.

Once an engineering and construction contractor has been selected, the project schedule will be firmed up, but right now, Achema is planning on beginning construction in the spring of 2007. All the units should be operational by the fourth quarter of 2008.

These projects are three of eight international nitrogen fertilizer-related projects that Industrial Info is tracking to begin construction in 2007. The combined total investment for the eight projects is $1.4 billion.

Achema has produced fertilizer chemicals since 1968 and has enjoyed four decades of growth. Achema also produces adhesives, paints, resins, industrial gases, and water treatment chemicals. Achemca produces over 65 different chemical-based products. Over the past ten years, Achema has spent over $120 million in upgrading technology, expanding capacity, and operating efficiency. Of the $120 million, $11.5 million was invested in environmental upgrades to meet regulatory standards spread out over NOx catalyst, selective NOx technology and a hydrogen isolation unit.

Most (90%) of the products produced at Jonava are exported throughout the European Union and Achema is aiming to distribute worldwide. Achema is currently constructing a 30,000-ton liquid fertilizer terminal in Gent, Belgium, which will assist in advancing its distribution reach.

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